Appendix F · Tools

Contract red flags and green flags

A quick-scan checklist for any offer. If a red flag shows up, do not ignore it — ask about it directly.

Red flags

Watch for	Why it matters
Pressure to sign immediately	Legitimate companies give you time
No written offer	Verbal agreements are not enforceable
Overly broad non-compete	Could block you from the industry for years
Vague equity terms	"We will figure it out later" means you have nothing
No clear job description	You will not know what success looks like
Below-market pay, no equity	You are being undervalued
"We are like a family" without boundaries	Often means overwork and guilt-based retention
No onboarding plan	They may not know what they need you to do
High turnover in the role	Ask why previous people left
Founder avoids funding questions	The company may not have runway

Green flags

Look for	Why it matters
Clear job description with success criteria	You know what is expected
Written offer with all terms	Transparency builds trust
Reasonable non-compete	Protects both parties fairly
Clear equity with vesting schedule	Your ownership is defined
Structured onboarding	They are prepared for you
Open about funding and stage	Honest leadership
References from employees	People are willing to vouch
Willingness to negotiate	They value your contribution
Investment in your development	They want you to grow

If three or more red flags show up — even small ones — slow down. Send a follow-up note asking for clarification on each. Their answers tell you more than the contract does.